View Full Version : For us young and poor people that need to finance..... :)
03-30-2002, 06:57 AM
What term loan would you suggest???? The low monthly payment for a 10 year looks appealing, but the 10.95% is close to credit card debt...
Plus how strict is the financing??? We just bought our first home about 5 months ago(10% equity) and other than that our only real asset is our 401K's we started about 2 years ago....
I'm gonna say that "Disney Financing" is going to be your best bet.
As others have said, Disney has little to lose if you default on your loan - it's a timeshare - there's no Hondas to chase across the country! :) (I work for a Bank, can you tell?!?)
Plus, they offer no pre-payment penalties, and will even allow you to set your monthly debit at whatever amount you choose - i.e. I bumped my monthly payment up a few $$ to make an even $x00 amount.
Then, as you establish more equity in your home, or if a lower rate alternative comes along in the future - you could pay it off and re-finance at a lower rate.
Few here have indicated that they were turned down by Disney. I only recall one or two saying that Disney asked them to put a little more $$ down then was originally requested.
03-30-2002, 08:24 AM
I was in the same boat (basically). The payment for the ten year financing (and dues) was pretty much all we can afford at THIS time. My fiance is only working part time as she finishes her masters degree (May) and we are saving and paying for our wedding in November. So we got the ten year loan and as our situation changes and we can afford more we will pay more and hope to get it done in a few years.
I was also nervous about the financing being approved as we don't have any reall assests, but I figured it would be easier to get (than a personal loan at a better rate from a local bank) since they can easily reclaim the ownership interest if we defaulted. I even asked a rep from the bank and they would not have given me a secured loan (against the DVC membership) so I could pay off the DVD (Disney Vacation Development) financing because I use a small local bank, and the timeshare in Florida would have been too much trouble for them to deal with. So I would have had to TRY to get a personal loan and for that amount of money the rates would have been close to the same.
I also have not heard of anyone really getting turned down by DVD for thier financing.
03-30-2002, 10:14 AM
When we financed through Disney, we could prepay the loan without any penalties which was nice. We did pay it off early which helped. If you have any questions, I suggest you talk to someone in DVC accounting - they have always been helpful & patient!
03-30-2002, 10:43 AM
I agree.... DIsney excepts just about everyone. I wouldnt worry.... I also think paying a little extra every month(even 10 bucks) really really helps, because any extra you send goes towards the pricipal.
We took the 10 year deal because at the momment we only want a small monthly payment. But in a year or two (when our car note is paid in full, we plan on sending in double payments to pay it off faster.
HTH and keep us posted!:)
03-30-2002, 01:54 PM
The interest you pay to Disney may be tax deductible. That could bring the after-tax interest cost down to 7-point-something percent.
03-30-2002, 03:27 PM
What I thought was a little funny was that Disney even let us make our ressies at our "home" before they approved us for financing. Guess they were pretty sure they don't turn down people.
03-30-2002, 03:41 PM
DVC financing is definitely tax deductible. DVC will place a mortgage on the property. Since you purchased a home you should be itemizing deductions with your interest. This would add to the deductions. Sure beats credit card debt. which is not deductible.
03-30-2002, 08:17 PM
I agree that Disney will finance most anyone. The 10 year financing would seem to work well for you now and then if you can afford to, pay it off early. Another thing we do to make it even easier is, Disney debits our bank account every month, so we don't have to even remember to pay. We put the years worth of payments in our account when we get our tax refund!
04-01-2002, 08:03 PM
Thanks to everyone, you have all been most helpful!!!! We just got married at Disney and on the way home we basically decided the down payment is what we will spend our wedding money on!!! :)
04-02-2002, 11:22 AM
04-02-2002, 12:41 PM
Congratulations and you will have a Magical Time making memories with your family. :p
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